Nestlé opens $140 M dairy factory in Chile

Nestlé has announced the opening of its new dairy factory in Chile. The CHF 127 million ($140 million) factory is a part of the company’s continued commitment to developing its operations in the country. The factory will produce a range of milk products and ingredients with added nutritional value for domestic consumption and for export to the United States, Central America, the Middle East, and Asia. When fully operational, the factory will have a production capacity of 30,000 tons of milk powder, enabling Nestlé to meet increased demand for dairy products that offer a nutritional ‘plus.’ The factory will provide 300 direct jobs and 1,500 indirect jobs.

Felipe Larraín, Chile’s Finance Minister, and Environment Minister Maria Ignacia Benitez, attended the factory’s opening ceremony with Nestlé CEO Paul Bulcke. “This factory will produce dairy products with added nutritional value that meet the different needs of our consumers, both in Chile, Latin America, and in other countries around the world,” said Bulcke. “Through continuous investment and innovation we are always striving to provide our consumers with products that meet their nutritional needs at every stage of their lives.”

As with Nestlé’s other dairy factories around the world, the manufacturing site is situated in a rural area close to the dairy farms that supply it with fresh milk. This not only enables Nestlé to trade directly with farmers, but also to provide them with technical assistance and training to improve milk production and quality. In Chile, Nestlé operates a dairy support program in all the regions where its milk factories are located. It reaches a total of about 1,200 milk producers. Additionally, since 2001 the company has participated in a government initiative that aims to strengthen the relationship between private companies and their suppliers.